Ways Psychology Affects Your Money

• Spender vs. Saver:  Spenders can see so many creative possibilities when it comes to money. On the other hand, a saver’s first instinct is to not spend their money.
• Nerd vs. Free Spirit: Nerds genuinely look forward to organizing their budget. Free spirits... need the nerds to help them make a realistic budget. 
• Safety vs. Status: People who value safety want the security that money can bring.  They need to watch out for living in fear (that keeps them from giving generously, investing in retirement, or even spending money on things they really need).
• Your Family and Childhood: The way you heard your parents talk about money—or not talk about it—definitely influenced your attitude about it from an early age. This alone won’t define your money mindset, but it’s good to be aware of.

Self-awareness is a valuable tool. You need to learn more about the way your mind works if you want to grow. Whether we’re talking about money or life as a whole, knowing yourself is a huge factor in creating meaningful change.

Personal finance is 20% head knowledge and...